Daimler AG has introduced an funding of 500 million euros ($589 million) for its plant in Hambach, France, to start out manufacturing on a compact electric car for the Mercedes-Benz EQ model. Recognized as “Smartville,” the complicated was function constructed within the Nineteen Nineties to provide the automaker with the primary batch of Sensible ForTwos and has been buzzing alongside ever since.

Whereas quite a few retailers have billed the mannequin as a “Tesla fighter,” the rumor mill claims this vehicle is sort of a bit smaller than the Mannequin three. That sounds affordable sufficient, contemplating the brand new mannequin can be produced in the identical facility as the electric ForTwo and cabrio. Nevertheless, the multi-million greenback funding will presumably go towards increasing the manufacturing unit and procuring the EQ its personal meeting line. We’ve heard nothing concerning the new Mercedes being a rebranded Sensible vehicle.

There are literally a number of grey areas to navigate right here. Whereas Mercedes spent numerous time billing EQ as an electrified subsidiary, it’s already tacking the identify onto electric Sensible automobiles. The nomenclature now appears meant for any Daimler mannequin with an electric powertrain, plus cleverly styled idea automobiles. Spyshots of the EQC sport utility vehicle, Mercedes’ first official entry into its broader EV effort, present the closely camouflaged vehicle wanting very very similar to the standard GLC-Class — not the idea EQs we’ve seen up to now.

Aside from the powertrain, we anticipate the pair to share sufficient elements for you to wish to take a fairly shut look to inform them aside. Technically, the corporate’s Electrical Car Structure is new. However it’s additionally immediately based mostly off the prevailing Modular Rear Structure that the GLC presently makes use of. Daimler will in all probability give the EQC a singular grille and perhaps some particular trim items.

If that’s the recipe EQ is adhering to, the compact headed for meeting in France might be an electric model of the A-Class. Since Mercedes-Benz Automobiles intends to launch greater than ten electric automobiles by 2022, hitting each phase, it might assuredly supply one thing in that size ultimately. Nevertheless, Mercedes is just giving us the faintest of hints to assist transfer that principle out of the realm of full hypothesis.

“The Sensible plant in Hambach will turn out to be part of our international compact car manufacturing community with the lead plant in Rastatt, Germany,” Mercedes manufacturing chief Markus Schaefer advised Automotive Information in a press release from Friday.

Rastatt is accountable for GLA and A-Class meeting, lending a smattering of credence to the speculation that the compact EQ may share elements. Daimler has additionally introduced its intent to supply luxurious EQ fashions at its manufacturing unit in Sindelfingen, Germany, the place it builds the S-Class.